On January 14, President Biden announced the American Rescue Plan, a $1.9 trillion package providing additional
funds for combatting the COVID-19 pandemic.
The wide-sweeping package will provide additional direct payments to residents and include more funding for rental assistance, vaccine distribution, and unemployment insurance. The package also includes direct funding to state and local governments to
ensure that front-line workers remain employed.
Below are some highlights from the stimulus package:
- $350 billion in emergency funding to state, local, and territorial governments to ensure that front-line public workers remain on the job and paid. The funds will be used to distribute the COVID-19 vaccine, scale-up testing, reopen
schools, and maintain vital public services.
- $160 billion to establish a national vaccination program, expand testing, mobilize a public health jobs program, and develop other necessary programs to combat COVID-19.
- Reestablish emergency paid leave first introduced under the Families First Coronavirus Response Act. Biden’s paid leave program will provide 14 weeks of paid sick, family, and medical leave through September 30, 2021. Most importantly,
local governments will be reimbursed for the cost of this leave.
- $25 billion in additional funds for rental relief. This is in addition to the $25 billion included in the December stimulus bill. An extra $5 billion will be added to the Low Income Home Energy Assistance Program to help cover home
energy and water costs.
- Extend the federal eviction moratorium to September 30, 2021. Additionally, people with federally-guaranteed mortgages can apply for forbearance until September 30.
- $40 billion to ensure that childcare providers can remain open as well as expand the childcare tax credit.
- $15 billion in flexible, equitably distributed grants for small businesses to help them reopen and rebuild. These funds are in addition to the Paycheck Protection Program.
- $20 billion to support public transit agencies. Agencies can use the funds to keep workers employed as well as ensure that no routes are cut from service.
- Increasing the federal minimum wage to $15. It is unclear from this proposal if it would be a phased-in increase or if it would be an immediate increase.
Although President Biden comes into office with Democrats controlling both the House and Senate, it does not guarantee that all the proposed programs will make it into the final bill. Questions also remain regarding how the $350 billion for state and
local governments will be distributed and how the funds can be used.
AWC and the National League of Cities will continue to advocate for direct, flexible funding for cities and towns in Washington.